Starbucks reveals plans for $15 minimum wage across America, following workers’ demands for higher pay

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Starbucks is aiming for a $US15 minimum wage in the US. Starbucks
  • Starbucks is aiming to raise its minimum pay for all workers across the US to $US15 per hour over the next three years, CEO Kevin Johnson told The Wall Street Journal.
  • Johnson wrote in an open letter that more than 30% of US workers currently make $US15 or more per hour, and that Starbucks is on the path to have every worker make that much in “the coming two to three years.”
  • The coffee giant is raising all US workers’ pay by at least 10% in 2020.
  • Some employees previously told Business Insider this year’s pay raise was not enough, as workers petitioned for a $US15 minimum starting wage.
  • Visit Business Insider’s homepage for more stories.

Starbucks is aiming for a $US15 minimum wage, as the coffee giant makes a major investment in worker pay.

CEO Kevin Johnson told The Wall Street Journal that, over the next three years, he wants to raise wages for all US store workers to at least $US15 per hour.

Starbucks is in the process of giving all employees at least 10% raises, with pay hikes rolling out across the US by Dec. 14. In an internal memo viewed by Business Insider, Rossann Williams, the president of Starbucks’ company-owned US stores, said that the company is “making one of the most substantial investments in pay in our company’s history.”


Read more:
Starbucks is giving every barista in the US a raise, but some workers demand more as $US15 minimum wage looms

On Wednesday, Johnson released a public letter he sent to Congress, calling for “immediate bipartisan action to pass new COVID relief legislation.” In the letter, Johnson highlights financial investments that Starbucks made during the pandemic and the recent wage hike.

“With these investments, more than 30 per cent of our U.S. retail partners are currently at or above $US15/hour and we continue on our path to ensure all U.S. partners will be making at or above $US15/hour within the coming two to three years,” Johnson writes.

Starbucks workers have been pushing for a $US15 minimum wage, with nearly 10,000 people signing a CoWorker.org petition on the topic.While the company has made significant investments in its workforce in 2020, some employees feel they deserve greater compensation during the pandemic.

“If we’re labelled as essential workers, we should get paid essential,” Jay Josef, who has worked at Starbucks for nine years, told Business Insider. “That’s why [we want] a $US15 minimum wage increase.”

Higher pay is an expensive proposition for Starbucks. Stifel analyst Chris O’Cull said in an October report that Starbucks, along with Chipotle and Shake Shack, are among the three restaurant stocks that would be most impacted if a federal $US15 minimum wage were to pass.

Unlike many major chains, Starbucks is not franchised. As a result, higher wages directly impact the company’s bottom line. Roughly half of the chain’s US locations, or 9,600 stores, are owned by the company.